MOTHER DAIRY FRUIT & VEGETABLE
PVT. LTD.
QUICK FACTS
Industry
Consumer products
Employees
3,000
Headquarters
New Delhi, India
Web Site
www.motherdairy.com
SAP® Solutions and Services
Consolidating operations with the
SAP® ERP application and the SAP
NetWeaver® Business Warehouse
component
Implementation Partner
SAP Consulting, Siemens Information
Systems Ltd.
Mother Dairy Fruit & Vegetable Pvt.
Ltd. – a wholly owned company of
India’s National Dairy Development
Board – markets dairy products,
edible oils, and fresh fruits and
vegetables through a national distri-
bution network. Disparate systems
among these multiple lines of
business once hindered profitable
growth. But Mother Dairy has con-
solidated operations on the SAP®
ERP application and established
standard business processes
across the enterprise.
SAP Business Transformation Study
Consumer Products
UNIFYING DIFFERENT LINES OF
BUSINESS FOR BROAD-BASED GROWTH
Key Challenges
• Support company’s growth from a regional
to a national business
• Enable real-time visibility and fast response
required by the dairy and food industry
• Consolidate multiple lines of business on a
single platform
• Improve financial control and reporting
Implementation Best Practices
• C-level executive support
• Full-time assignment of team members
from each function and division
• Minimal customization
• Leveraging of best-practices approach
throughout business
Financial and Strategic Benefits
• Increased support for perishable food
operations with real-time functional
integration
• Reduced monthly close cycles by 50%
• Reduced time spent on financial reconcili-
ation of interunit transfers by 75%
• Gained support for multiple costing meth-
ods and dynamic price changes
• Achieved enterprise-wide, real-time visibili-
ty of inventory
• Improved capital planning with automated
capital asset budgeting and accounting
Why SAP Was Selected
• Broad functionality that enables a simpli-
fied landscape
• Customer’s confidence that solution met
all business requirements
• Scalability that supports growth objectives
• Accepted standard in consumer products
industry
• Extensive portfolio of integrated applica-
tions available for future improvement
Low Total Cost of Ownership
• Eliminated 10 stand-alone systems,
including custom-built and Microsoft
applications
• Mitigated risks of operating on some
systems that were no longer supported
• Reduced attrition in IT by building SAP®
software skill set
• Centralized IT and taxation operations
• Reduced effort for extending software
footprint to new facilities
Operational Benefits
Key Performance Indicator Impact
Time spent on annual statutory -65%
closure of accounts
Working capital -7.5% despite business
growing by 10%
Ability to forecast Plan versus actual
business results within a range of ±5%
“The SAP ERP application addressed our immediate needs for standardization, www.sap.com /contactsap
integration, and consolidation while providing us a solid business platform on
which we can continue to grow and innovate.”
Executive Leadership Team, Mother Dairy Fruit & Vegetable Pvt. Ltd.

Revolutionizing India’s Dairy it required an innovative approach. First, The most significant benefit, on which
Industry the company decided to roll out financials, the executive leadership team is unani-
production planning, materials manage- mous, is enforced process discipline,
Mother Dairy Fruit & Vegetable Pvt. Ltd. ment, and sales and distribution function- which has paid off in faster, more accu-
was founded in 1974 as part of a ality in a big bang across locations rate financial information management
nationwide development program and businesses. Second, it adopted SAP- and reporting. This in turn has led to the
designed to revolutionize milk produc- supported best practices and minimized ability to make better decisions faster,
tion in rural India. Today, Mother Dairy customizations, in order to standardize which is paramount in Mother Dairy’s
markets 2.8 million liters of milk every business processes and centralize con- business.
day. This once regional company boasts trol. Only customizations that were unique
a national presence with three separate to the business – such as dual-axis pricing Planning for the Future
lines of business: dairy products, fruits for milk and retro pricing for fresh foods –
and vegetables, and edible oils. were undertaken. Finally, the firm chose Mother Dairy is always identifying addi-
SAP Consulting to manage the overall tional ways to promote good corporate
As Mother Dairy grows, so does its project to help ensure its success. health. For example, the company also
need for integrated business technolo- rolled out the SAP Advanced Planning &
gy. Operating in the fresh foods indus- Delivering Fresh Benefits Every Day Optimization component and is current-
try, Mother Dairy requires clear visibility ly fine-tuning the user experience to
across complex supply chains and the Today, Mother Dairy has an enterprise- maximize improvements in sales and
ability to respond quickly to dynamic wide SAP software footprint that sup- operations planning and execution. Next
market conditions. In the past, a frac- ports increased visibility and greater on the agenda are enhanced business
tured IT landscape resulted in siloed control across its fast-paced operations – intelligence capabilities to further
business processes, and the company’s where procurement, processing, and dis- improve market responsiveness and a
top management had very little visibility tribution can all occur on a daily cycle. For shared services center for the compa-
into vital information such as sales, example, the company now has real-time ny’s HR and finance operations. These
inventory, costs, and margins. visibility into inventory at all locations. days, unified operations and high-quality
Moreover, Mother Dairy has the ability to products are both helping ensure that
Mother Dairy decided to replace all of compute both moving-average and stan- Mother Dairy remains one of India’s fin-
its legacy applications and consolidate dard cost methods for inventory valuation est food companies.
operations on the SAP® ERP application and product costing. And the company
with the SAP NetWeaver® Business can dynamically effect price changes
Warehouse component. Company when necessary.
executives were confident that the soft-
ware’s broad functionality met the Having a better view and control of cus-
unique needs of the industry and tomer receivables and credit limits, cou-
offered the scalability required by the pled with the ability to integrate its SAP
growing company. software with its bank accounts, has
resulted in improved cash flow and robust
Developing a Recipe for Success working capital management at Mother
Dairy. The company can also forecast
Mother Dairy was the first large-scale business results more accurately, and the
SAP software implementation in the time needed to close annual accounts has
Indian dairy and fresh foods sector, and dropped significantly.

50 101 147 (10/09)

©2010 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects
Explorer, and other SAP products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP AG in Germany
and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective logos
are trademarks or registered trademarks of Business Objects Software Ltd. in the
United States and in other countries.
All other product and service names mentioned are the trademarks of their
respective companies. Data contained in this document serves informational
purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials are provided
by SAP AG and its affiliated companies (“SAP Group”) for informational purposes
only, without representation or warranty of any kind, and SAP Group shall not be
liable for errors or omissions with respect to the materials. The only warranties
for SAP Group products and services are those that are set forth in the express
warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.